Hawai'i's largest ocean transportation firm, Matson Navigation Co., yesterday said it plans to cut 10 percent of its nonunion workforce, or about 60 people, to align expenses with declining business.

The company, a unit of Honolulu-based Alexander & Baldwin Inc., employs about 845 people, though only about 600 are in nonunion positions affected by the reduction effort.

Matson's move comes after the company instituted hiring freezes over the past two years, and follows other large Hawai'i companies that began major layoffs last year as the local economy began to contract.

The job losses at Matson are the latest in a string of layoffs locally over the past year, including 1,900 people at Aloha Airlines; 274 at Maui Land & Pineapple; 169 at Hawaii Medical Center; 130 at DFS Group; 120 at Molokai Ranch; 118 at Servco Pacific; 91 at The Honolulu Advertiser; 85 at Weyerhaeuser Co.; 70 at Hawaiian Dredging; and 38 at Palama Meat Co.

W. Allen Doane, chairman and CEO of A&B, said in a statement that Matson's parent company plans to implement other cost-reduction measures that include eliminating salary increases and adjusting profit-sharing targets and incentive-award targets.

Besides Matson, A&B operates real estate division A&B Properties, which is largely engaged in development, and agricultural businesses Hawaiian Commercial & Sugar Co. and Kaua'i Coffee Co. Another affiliate, Matson Integrated Logistics, which in part coordinates land-based cargo transportation, also is excluded from the 10 percent workforce reduction plan but may be affected by other cost-reduction efforts.

Doane said A&B expects to announce "good" profits on Feb. 4 for the fourth quarter of last year, but that proactive measures are necessary in view of the present economic climate.

"Measures involving employees are difficult; however, it is important that Matson realign its cost structure to current demand," Matthew Cox, Matson Navigation president, said in a statement.

In October, A&B reported a $36.8 million profit for the third quarter, a 25 percent decline from $49.1 million a year earlier in large part because of lower real estate sales and a drag on Matson's operating profit from higher expenses and a 5 percent decline in container volume.

Hawai'i container volume was down 7 percent, while Hawai'i automobile shipments were down 29 percent in the third quarter over a year earlier.

The 10 percent job cuts will be focused on Matson Navigation and affiliate Matson Terminals, which employ people in Hawai'i, Matson's Oakland, Calif., headquarters, Guam, Phoenix and some smaller West Coast offices.

Jeff Hull, Matson's spokesman, said it's not possible to estimate how many Hawai'i employees will be affected.

The Matson job cuts will be carried out in two phases, the first of which will be a voluntary severance option followed by layoffs if necessary.